By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- A much better-than-expected report on
U.K. retail sales helped lift the FTSE 100 index on Friday,
although a profit warning from Royal Dutch Shell PLC cut into the
benchmark's gains.
The FTSE 100 index added 0.2% to close at 6,829.30, sending it
1.3% higher on the week.
The index was buoyed by data from the Office for National
Statistics that showed U.K. retail sales jumped 2.6% in December
over November, beating analysts' forecast of a 0.2% rise. That was
the biggest month-on-month rise since February 2010.
Retail firms were among top advancers in the index, with shares
of Marks and Spencer Group PLC up 1.8% and Kingfisher PLC rising
0.9%.
Mining firms rose, tracking gains for most metals prices. Shares
of Glencore Xstrata PLC (GLCNF) added 3.4%, Rio Tinto PLC (RIO) put
on 1.5% and BHP Billiton PLC (BHP) gained 1.6%. Miners had also
advanced on Thursday after Citigroup went bullish on the sector for
the first time in three years.
But shares of Royal Dutch Shell PLC (RDSB) gave up 1.2% after
the energy giant warned its fourth-quarter profit would be
significantly weaker than recent levels.
"Despite all this Royal Dutch Shell remains our top pick for
2014. The difficulties of 2013 make it easy to forget that Shell
still starts from a stronger free cash flow position than the
majority of the peer group," analysts at Barclays said in a
note.
"We expect the final presentation of the 4Q results and the
March strategy presentation to see new CEO Ben Van Beurden set out
a path to improving operating cash flow, free cash flow and [return
on average capital employed] from the existing Shell portfolio,"
they added.
Oil-services firm Petrofac Ltd. climbed 1% after Nomura lifted
it to buy from neutral.
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